Minsheng Bank Q3 profit rises 3.4pc, thanks in part to reduced tax bill
A battle amongst substantial shareholders for control of Minsheng Bank continues, prompting analysts’ concerns about effective leadership at the mid-sized lender
Minsheng Bank, which has been beset by a shareholder battle for management control, said its third-quarter net profit rose 3.4 per cent year on year, reaching 12.2 billion yuan, helped by a smaller tax bill compared to a year ago.
Minsheng’s net interest income for the quarter was down 0.2 per cent on year, reaching 23.5 billion yuan, while fee and commission income dropped 7.2 per cent to 11.9 billion yuan, according to a filing. The bank said it managed to lower its tax bill by 1 billion yuan, creating a 28.3 per cent saving which offset tumbling revenues.
“Minsheng’s problems have now surpassed beyond its business level to the management,” said Shujin Chen, research director at DBS Vickers.
Helped by the reduced tax bill, net profit was up 2 per cent for the nine months ending in September compared to a year ago, reaching 39.9 billion yuan. Non-performing loans were 1.57 per cent as of end September, compared to 1.67 per cent at the end of June.
Earlier this year, the bank was the subject of a dramatic bidding war between insurance companies and substantial shareholders, as the various parties wrestled for management control.
